OKO

OKO operates as a specialized insurtech firm, providing index-based crop insurance to smallholder farmers in emerging markets, a demographic historically excluded from such financial safety nets. Founded in 2017 by Simon Schwall and Shehzad Lokhandwalla, the company was established to address the acute vulnerability of farmers to adverse weather events like droughts and floods. The inspiration for OKO came from Schwall's prior experience distributing mobile-based life insurance in Papua New Guinea, where he witnessed the devastating impact of a drought on farmers' livelihoods. This led him to partner with Lokhandwalla, who brought expertise in mobile software development and micro-lending for farmers. The company is registered in Israel and Luxembourg, with primary operations in African countries, including Mali and Uganda, and plans for expansion into Ivory Coast.

OKO's business model is centered on accessibility and automation, functioning as an insurance broker that partners with local insurance companies, such as Allianz and SUNU Assurances, who underwrite the policies. Revenue is generated through commissions on the insurance products sold. The company leverages technology to overcome traditional barriers to distribution and service. Using satellite data, weather information, and AI, OKO monitors weather patterns and crop conditions remotely. This data-driven approach enables the automation of risk assessment and claim management, which significantly lowers operational costs. When a trigger event like a verified drought or flood occurs in a specific area, the platform automatically processes and sends payments to the affected farmers.

The service is designed to be highly accessible, not requiring a smartphone or internet connection. Farmers can register and pay for their policies using a simple USSD short code and mobile money services, a critical feature for reaching rural and unbanked populations. OKO collaborates with mobile network operators like Orange to integrate its service into their mobile money platforms, facilitating easy access and payment. Beyond insurance, the company provides farmers with valuable information such as weather alerts and farming tips. By de-risking agriculture, OKO's insurance also serves as a crucial enabler, helping farmers secure micro-loans from financial institutions. The company has successfully raised over $2 million in funding through multiple rounds, with investors including Newfund, ResiliAnce, Mercy Corps Ventures, and Techstars, to support its growth and market expansion.

Keywords: crop insurance, insurtech, parametric insurance, smallholder farmers, financial inclusion, climate resilience, mobile insurance, agritech, Africa, index insurance, mobile payments, satellite data, weather monitoring, agricultural finance, micro-insurance, Mali, Uganda, risk management, sustainable agriculture, emerging markets